SEOUL, May 24 (Reuters) - South Korea’s current six-hour stock trading window will be extended by 30 minutes effective from August 1 this year, as the Korea Exchange set its sights on attracting more business through greater visibility to markets like China.
“As financial markets are increasingly globalised, short trading hours have been a great barrier in promptly reflecting information from foreign markets like China due to the time difference,” said Korea Exchange in a statement on Tuesday.
The exchange also expressed concerns South Korea could lag behind its competitors in Asia in attracting liquidity due to its shorter trading hours.
The change was officially announced by the government in April.
From August 1, stock trading will take place from 0000 GMT to 0630 GMT. This would mark the first change in trading hours since May 2000 when they were extended to six hours from five.
Korea Exchange said it expects “effective use of the extended trading hours” to boost daily average turnover in the stock market by 260 billion won ($218.16 million) to 680 billion won, although it wasn’t immediately clear if the exchange used any other assumptions in its forecasts.
The launch date for a similar 30-minute extension for foreign exchange trading hours will also be Aug. 1, according to a managing committee for South Korea’s foreign exchange market. ($1 = 1,191.8000 won) (Reporting by Christine Kim; Editing by Shri Navaratnam)